Elon musk's Tesla may save upto $1 billion yearly operational costs because Tesla would be reducing its salaried headcount by 10%
A Goldman Sachs analyst says it could give the company as much as $1 billion in annual operating expenses that can be used to reduce daily expenses of the business.
In the past, Musk had noted that his electric vehicle company will reduce its headcount of salaried employees by 10% as the company is overstaffed in certain areas.
The initiative, as per Goldman Sachs analyst Mark Delaney could yield $0.225-$1 billion annually in OPEX savings, according to Teslarati.
Musk wrote in his letter in his letter "Tesla is reducing its the number of salaried employees by 10% since we've become overstaffed in a variety of areas.
This is not applicable to those who is actually making cars or battery packs or installing solar panels. The number of hours worked will increase .
Musk also clarified that Tesla is planning to boost its headcount by a significant amount in the coming 12 months however, the number of employees paid will likely not change significantly.
Musk also added "Total headcount will increase, but salaried salaried should be fairly flat,"
Delaney said : "Musk's comments on Twitter of the salaried headcount being largely stagnant suggest that the company's goal is to reduce cost growth , not to cut OPEX all-around.
Delaney also added "Our base case assumption is for OPEX, including SBC to rise by an average of about $255 million per quarter from 2Q22 through 4Q22, by $1.9 bn in 2022 YoY...
And by $2.6 billion in 2023 YoY. Each $100 million of OPEX is about $0.06-$0.08 of EPS,".